- China scrambles to resolved electricity shortages
- Winter demand peaks
- Provinces begin rationing power
China is currently experiencing escalating power shortages across all provinces. The country is scrambling to resolve these shortages as winter demands peaks, and several provinces begin electricity rationing. In response to the power shortages, the Chinese government ordered several manufacturing companies to halt production. Furthermore, an increase in demand for power from Chinese industries has led to a hike in coal prices.
“The power-supply shock in the world’s second-biggest economy and the biggest manufacturer will ripple through and impact global markets,” Analysts from global financial services group, Nomura, are quoted as saying.
The shortage of coal supply, the rising cost of coal, and the tougher Co2 emission standards have contributed to the power crisis in the country. The provinces of Heilongjiang, Jilin and Liaoning in northeast China are the worst hit with unprecedented power cuts, as reported in the Chinese state media. However, the State Grid Corporation of China has pledged to ensure that basic electricity demand for daily consumption is met and power cuts are avoided.